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Improving green performance in pharmaceuticals

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PA Consulting Group benchmarking study


Gone are the days when "Going Green" was a 'nice to have' marketing option. Pharmaceutical companies are under increasing pressure to operate with a greater focus on social responsibility, including environmental sustainability. "Going Green" is particularly challenging for this sector, as organisations must operate under stringent but fragmented regulatory requirements, a vast network of chemical intensive vendor and supply chain relationships, and the near constant acquisition and integration of pipeline products.

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There are signs of rapid evolution – which is noteworthy given the historically slow response time of Big Pharma. Sustainability does not stop at meeting the demands set by customers and regulators. An increasing number of pharmaceutical companies are recognising that the drive for greener business creates new opportunities for growth and can help them improve efficiency. The change is driven by business as much as environmental needs as companies are seeking cost reductions to offset the shortage of new products and market uncertainties.

Major companies, for example, discovered long ago that decreasing energy and water consumption helps to improve the bottom line while contributing to sustainability goals. In addition, use of natural solvents and greater environmental responsibility in the production process is moving up the agenda. Such 'Green Manufacturing' cuts down on harmful, more expensive chemicals by replacing them with cheaper natural solvents.

Even if cost reduction becomes less critical (the FDA is on track to issue the most new drug approvals in nearly a decade), the emphasis on sustainability will likely continue. In addition, the pharmaceutical industry is under increasing scrutiny by regulators, and social impact has become an ongoing concern among constituents.

There is a great deal of commentary available about specific companies' efforts in these areas, but little work has been done to compare performance within particular sectors. PA Consulting Group (PA) is breaking new ground with its Green Benchmarking Study of several leading pharma players: Novartis, Roche, Sanofi, and AstraZeneca.

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To talk to one of our experts about green manufacturing, contact us now.

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